Following the S&P 500's banner year in 2024, some think the index is due for a pullback. And analysts are pretty sure which stocks you'd want to avoid in 2025.
Seven S&P 500 stocks, including Garmin, Franklin Resources and T. Rowe Price, are rated a "strong sell" or "sell" by at least 16% of all the analysts covering them, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. That's really bearish among usually glowingly positive analysts: Only 4% of S&P 500 stock ratings are that low. And nearly half the stocks in the S&P 500 have no sell ratings at all.
So, such bearishness is worth paying attention to. To pinpoint the stocks analysts are most negative on, only stocks with more sells than buys were included and the 12-month price targets indicate a decline is coming.
Getting Lost With Garmin Stock
A third of the nine analysts studying shares of the GPS company rate it a sell or strong sell. Additionally, they're calling for the stock to be 9% lower in 12 months.
This negativity may come as a surprise. Shares are up a whopping 64% this year. And 22% of analysts still think the stock is a strong buy or buy. The stock carries a 91 RS Rating and 97 Composite Rating. Plus, the company's profit is seen rising 25% in 2024 and 10% in 2025.
And yet, many analysts seem to think the shares have gone up too far, too fast.
Giving Up On Mutual Funds
There's a large degree of pessimism over shares of mutual fund companies Franklin Resources and T. Rowe Price. Franklin is rated a sell by 33% of analysts and T. Rowe by nearly 29%. It's not all that surprising analysts are bearish given the drop-off in interest in actively managed mutual funds.
What's more, analysts think Franklin, already down 28% this year, will fall another 5.3% in the next 12 months. And T. Rowe Price is seen falling 2.9% even after lagging the S&P 500 this year. Not a single analyst rates either stock a buy.
It's possible analysts are too bearish. But if they're not, you've been warned.
S&P 500 Stocks With Most Sell Ratings
And all forecast to be lower in 12 months
| Company | Ticker | Total sell ratings | Downside in 12 months (est.) |
|---|---|---|---|
| Garmin | GRMN | 33.3% | -8.8% |
| Franklin Resources | BEN | 33.3% | -5.3% |
| T. Rowe Price | TROW | 28.6% | -2.9% |
| Expeditors International of Washington | EXPD | 28.6% | 0.9% |
| FactSet Research Systems | FDS | 22.2% | -4.4% |
| Hormel Foods | HRL | 16.7% | 0.0% |
| Paychex | PAYX | 16.7% | -3.0% |
